Protection of Limited Liability Status

One of the biggest concerns in business is risk management. It is imperative for companies and corporations, both large and small, to effectively manage and act in a manner that separates their business assets from their personal assets. However, filing the documents to organize a corporation or limited liability company (LLC) is only the first of many steps.

Failure to maintain corporate status exposes your personal assets to the potential claims of the company’s creditors. Therefore, you must be aware that maintaining a limited liability status for your business depends on many factors, which both you and your business control. Unfortunately, the law provides no specific set of rules to guarantee limited liability status; however, a court considers many factors in the event someone, such as a creditor or the IRS, questions your limited liability status. For example, you must comply with corporate formalities, such as filing your annual reports, holding annual meetings, and properly authorizing certain actions which the company engages in, such as loans to and from the company.

As your legal partner, we can effectively help you comply with all State and Federal regulations and formalities essential to keeping the limited liability shield in front of your assets. While some formalities may seem trivial, they all are very important and can be of the utmost importance in the event your company is sued.

Some of the services we provide to help you comply consist of reviewing your existing company documents to make sure they are up to date with current laws, assiting you in organizing a corporate book, keeping up on annual meetings, complying with required consents for actions taken by the company, and filing annual reports with the State.

Related Services: Choosing the Right Business Entity; Business Entity Organization; Business

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